Run your own business? Qualify on a P&L, not your tax returns.
When you're self-employed, write-offs can make your tax returns look smaller than your business really is. A P&L-only loan lets a profit-and-loss statement — yours, often prepared with your accountant — show your real income. Here's how it works and what it asks of you.
Who this is for
- Business owners whose write-offs shrink their reported income
- Self-employed buyers with 2+ years running the same business
- Owners with at least 50% ownership who can show a clean P&L
- Anyone who wants it explained step by step — in English or Spanish
How it works
Prepare your P&L
You'll bring a profit-and-loss statement covering the most recent year or two. Many lenders want it prepared or signed off by a licensed accountant; some accept a borrower-prepared statement backed by a few bank statements.
We match the program to you
Requirements differ by lender — some want a CPA letter, some want a couple of months of statements alongside the P&L. We line up the program that fits how your books are kept.
Review your numbers together
We walk through how the lender will read your P&L and what it means for your qualifying income, so the figure on the application is one you've already seen.
Appraisal, underwriting, and close
Credit and the appraisal still get a full review. We manage the file and keep you posted until you sign.
Your P&L tells the story
A profit-and-loss statement shows what your business really earns, instead of the smaller number left after write-offs.
No tax returns required
Qualify without handing over years of tax returns or W-2s — useful when deductions hide your true cash flow.
We compare the field
As an independent broker we shop multiple P&L programs so you're not stuck with one lender's rules.
Bilingual, hands-on help
We organize the paperwork with you and explain every requirement, in English or Spanish.
Today’s sample rates
Common questions
What exactly is a P&L-only loan?
It's a loan for self-employed borrowers that uses a profit-and-loss statement to show your income instead of tax returns. The statement summarizes your business revenue and expenses over a set period, and the lender uses it to calculate qualifying income.
Do I need an accountant to prepare it?
Often, yes — many lenders want the P&L prepared or signed by a licensed CPA or tax preparer. Some programs allow a borrower-prepared P&L supported by a couple of months of bank statements. We'll tell you which path your situation fits.
How long do I need to have been self-employed?
Most programs look for at least two years in the same business and ownership of 50% or more. If you're close but not quite there, we'll look at the whole picture and other programs that might work in the meantime.
How is this different from a bank statement loan?
A bank statement loan averages your actual deposits to estimate income. A P&L-only loan leans on the profit-and-loss statement itself. Some files use both. We compare them side by side and recommend whichever qualifies you for more on fair terms.
What property types can I use a P&L-only loan for?
A P&L-only loan can finance single-family homes, condos, townhomes, and 2–4 unit properties — a primary home, a second home, or an investment. The property type shapes the down payment and reserves more than the income documentation does. We'll confirm the fit for your specific home before we submit.
Is a P&L loan a non-QM loan?
Most are — but not all. The classic P&L-only loan is a non-QM program built for business owners whose tax returns understate what the business really earns. There's also an FHA version offered by certain lenders, which keeps FHA's terms while using a P&L for income. Non-QM just means a different documentation path than Fannie Mae and Freddie Mac require; either way, the lender still reviews your credit, reserves, and the business's track record before approving anything.
What is the FHA Self-Employed P&L program?
It's an FHA loan offered by certain lenders where a profit-and-loss statement — prepared by a licensed CPA, enrolled agent, or tax preparer, usually covering the most recent 12 to 24 months — replaces tax returns as your income documentation. You still get FHA's advantages: down payments as low as 3.5% with qualifying credit, more forgiving credit guidelines, and FHA mortgage insurance instead of the higher rates some non-QM programs carry. Worth knowing: standard FHA underwriting requires tax returns from self-employed borrowers, so this is a specific lender program — we know which lenders offer it and line your file up with one that does.